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Korean unions demand withdrawal of special-zone bill with 52-hour week exemption

🇰🇷 South Korea, Seoul 16:45 Policy & regulation Business5 Official updated 1 h ago first reported by 한국일보

In short

Democratic Party lawmaker Park Sang-hyuk introduced a hyper-regional special zone bill on 20 October that includes labor provisions such as an exemption from the 52-hour week. The FKTU and KCTU union confederations demanded its withdrawal, saying it undermines ongoing tripartite social dialogue. The Democratic Party said it will also submit a version without the labor provisions and merge the bills in review.

Read the full story 3 min read

On 20 October, Democratic Party lawmaker Park Sang-hyuk (박상혁) lead-sponsored a bill on the designation and operation of hyper-regional strategic industry special zones for regionally led growth. The bill includes labor provisions on working hours and the use of fixed-term workers. The Federation of Korean Trade Unions (FKTU, 한국노총) and the Korean Confederation of Trade Unions (KCTU, 민주노총) each issued statements the same day urging that it be withdrawn. [ 1 , 3 , 4 ]

Kyunghyang Shinmun reported that the bill includes an exemption from the 52-hour week for high-income managers and research and development staff, an increase in the permitted use period for fixed-term workers from 2 to 4 years, and an extension of the settlement period under selective working hours to up to six months. It also reported that foreign-invested companies would be allowed unpaid holidays and that the scope and period of dispatch work could be extended. Kukmin Ilbo said the 52-hour exemption would cover workers in the top 3% of earned income who work in new product and technology R&D. [ 3 , 4 ]

The FKTU said it condemned the government and ruling party for pushing labor provisions behind the back of social dialogue, and said the dialogue is not a mere stand-in to justify policies the government wants. The KCTU said it strongly condemned the introduction of a bill containing what it called changes for the worse in labor rules before substantive discussion had begun in the one-point social dialogue, and said it would block the bill through broad solidarity and strong struggle if it is not withdrawn. [ 1 , 2 , 4 ]

Democratic Party floor leader Han Byung-do (한병도) said the party would submit one bill with the labor provisions and one without, would not set a date for passage, and would prepare a final version through merged review. Kyunghyang Shinmun reported that lawmaker Choi Ki-sang (최기상) would submit the version without the labor provisions on 21 October and that lawmaker Jung Jin-wook (정진욱) was expected to submit a separate bill as early as the next week. The Ministry of Employment and Labor said it would not fix the conclusion or deadline of the social dialogue in advance and would consult the National Assembly so that its outcome is reflected in the bill review. A ministry official told Kukmin Ilbo the timing of the introduction was decided by the party. [ 1 , 3 , 4 ]

The tripartite dialogue began on 18 September with a vice-minister-level preparatory meeting, and the fifth working-level meeting was held on 20 October. Kyunghyang Shinmun reported that the meetings had so far consisted of the government, the two confederations and employers presenting their positions, and that the labor provisions had not yet been discussed. An FKTU official said it protested the introduction and asked to postpone the next meeting; the sixth meeting, set for 23 October, was moved to 28 October. A KCTU official said the delay was not a boycott. [ 3 , 4 ]

According to Hankook Ilbo, six business groups said the labor provisions are essential for global competitiveness and called a bill without them very regrettable. An unnamed semiconductor industry official said the simultaneous introduction of two bills appeared to be an attempt to postpone a decision and gain time. An Asia Economy editorial on 21 October called the two-bill approach irresponsible and argued for limited exceptions with safeguards, while saying the extension of fixed-term use periods needed separate careful judgment. A Hankook Ilbo headline the same day reported that labor groups were pursuing an outside-the-Assembly struggle. On 22 October, a Progressive Party Jeonnam-Gwangju chapter urged withdrawal, as reported by Newsis. [ 2 , 5 , 6 , 7 ]

Why it matters

The bill goes ahead while government, unions and employers are still in a social dialogue on the same labor provisions, and the unions have threatened a fight to stop it. The Democratic Party's plan to review two versions together leaves open whether the labor provisions will stay in the final text.

Key facts

  • On 20 October, Democratic Party lawmaker Park Sang-hyuk lead-sponsored the bill on designating and operating hyper-regional strategic industry special zones, which includes labor provisions on working hours and fixed-term workers. [ 1 , 3 , 4 ]
  • The bill would extend the permitted use period for fixed-term workers from the current 2 years to 4 years and exempt certain high-income managers and R&D staff from the 52-hour week. [ 2 , 3 , 4 ]
  • The FKTU and KCTU each issued statements on 20 October demanding withdrawal of the bill. [ 1 , 2 , 3 , 4 ]
  • The KCTU said it would block the bill through broad solidarity and strong struggle if it is not withdrawn. [ 1 , 2 , 3 , 4 ]
  • The Democratic Party said it will submit a bill with the labor provisions and one without, and prepare a final version through merged review. [ 1 , 2 , 3 , 4 ]
  • The fifth working-level meeting of the tripartite dialogue was held on 20 October; the sixth, planned for 23 October, was postponed to 28 October. [ 1 , 2 , 3 , 4 ]
  • Six business groups said the labor provisions are essential for global competitiveness and called a bill without them very regrettable. [ 2 ]

Confirmed by several sources

  • Park Sang-hyuk introduced the hyper-regional special zone bill on 20 October, including labor provisions. [ 1 , 3 , 4 ]
  • Both the FKTU and the KCTU demanded that the bill be withdrawn. [ 1 , 2 , 3 , 4 ]
  • The Democratic Party plans to submit a separate bill without the labor provisions and to merge the bills in review. [ 1 , 2 , 3 , 4 ]
  • The Ministry of Employment and Labor said it would consult the National Assembly so that the outcome of the social dialogue is reflected in the bill review. [ 1 , 2 , 3 ]
  • The bill would raise the fixed-term worker use period from 2 years to 4 years. [ 2 , 3 , 4 ]
  • The fifth working-level meeting of the social dialogue was held on 20 October. [ 1 , 2 , 3 , 4 ]

Still unclear

  • Whether the labor provisions will remain in the final bill. The Democratic Party said a final version will be prepared through merged review after both bills are submitted, and gave no deadline.
  • Who is covered by the working-hours exemption. One outlet says it applies to workers in new product and technology R&D in the top 3% of earned income; another says high-income managers and R&D staff; the KCTU cites R&D workers.
  • Whether the Democratic Party's two-bill approach is intended to delay a decision. This is the view of one unnamed semiconductor industry official quoted by one outlet; an editorial in another outlet also criticised the approach.
  • When further bills will be submitted. One outlet reports that lawmaker Choi Ki-sang would submit the version without labor provisions on 21 October and that lawmaker Jung Jin-wook would submit a separate bill as early as the following week; a later report names Jung among co-sponsors of the 20 October bill.

What local media are saying

Business mediaNewsis, Hankook Ilbo and Kyunghyang Shinmun reported the unions' statements and the party's two-bill plan, and Kukmin Ilbo reported the labor ministry's attempt to say the bill is not final. Hankook Ilbo also reported business groups' welcome of the bill and regret over a version without labor provisions. An Asia Economy editorial criticised the party for delaying a decision and said limited exceptions to working hours should be considered with safeguards. [ 1 , 2 , 3 , 4 , 5 , 6 , 7 ]

Timeline, local time

  1. Newsis reports that the FKTU and KCTU, in statements on 20 October, urge withdrawal of the bill. [ 1 ]
  2. Hankook Ilbo reports union opposition and the business groups' reaction to the bill. [ 2 ]
  3. Kukmin Ilbo reports that the labor ministry said the bill is not final and that dialogue would continue. [ 3 ]
  4. Kyunghyang Shinmun reports that the 6th meeting of the dialogue, planned for 23 October, was postponed to 28 October. [ 4 ]
  5. Hankook Ilbo reports on 21 October that labor groups are pursuing an outside-the-Assembly struggle against the bill. [ 6 ]
  6. Newsis reports on 22 October that a Progressive Party chapter urged withdrawal of the bill. [ 7 ]